The role of product receipt in financing of the agricultural sector

In this study, the role of the system of licenced warehousing and specialized product exchanging in financing of the agricultural sector was examined in terms of the collateral function of the product receipt. Agricultural enterprises, as well like all firms need financing in order to continue their production activities. Supporting policies implemented by the government in order to ensure the sustainability of agricultural production is not sufficient alone, but also alternative financing instruments has been applied via public and private banks Banks is one of the most referenced organizations by the agricultural sector in order to provide finance with its numerous branches and large range of products in our country. However, people who will provide resources from banks, has to meet some conditon which is set by these organizations. One of the most important condition is having a colletarel which must have monetary value which is accepted by all institutions that will be able to compensate the loss of the bank in case of non-payment on maturity of the loan. As part of licenced warehousing and specialized product exchange system, a new collateral has been offered to the agricultural sector thanks to product receipt representing products stored in licensed warehouses which is owned by the people who are engaged in agricultural activities. The product receipt has been used in financing agriculture with the launch of the first licensed warehouse firm in 2011, after legal framework of the system was created in 2005. Although credit based on the product receipt increases each year, it is not possible to say that this method has been reached a significant point in financing of agriculture. Therefore, in this study a research have been made to determine the needs in order to increase credit based on the product receipt; in this context, negotiations with all parties in the sector were held, as well. The determined points through after this study have been evaluated as a result of thesis and, it has been expected that the frequency of usage of product receipts, which will be a stronger collateral tool in this way, will increase in agricultural financing system by realization of the suggestions mentioned before. Key Words: licenced warehousing, specialized product exchanging, product receipt, agricultural financing